GALEZ, Elijah Richmond A.

11 – Provincia Germaniae

“June 2018 inflation soars to 5.2%”

According to the article issued by Ralf Rivas of Rappler.com, the inflation in the Philippines
continued to accelerate in June, reaching a fresh high of 5.2%, as reported by the Philippine
Statistics Authority (PSA) on Thursday, July 5, 2018. An account from the June inflation
accumulated 0.6% points higher than May, which was 4.6%. It states that the latest figure exceeded
the government and market expectations. Wherein, the last time it hit the highest statistic of
inflation was in October 2011, garnering 5.2% points. PSA indicates that this is due to the higher
annual rate of the heavily-weighted food and non-alcoholic beverages index at 6.1%. In addition,
higher annual mark-ups were also observed in rice, corn, flour, meat, vegetables, and other food
products.

The issue being discussed about the article mentions the recent statistics of the accelerated
inflation which surpassed the record 7 years ago. The inflation has exceeded the target of the
Bangko Sentral ng Pilipinas (BSP), whose main macroeconomic policy is to manage inflation.
Moreover, BSP Governor Nestor Espenilla Jr. stated that the June inflation number was just a
setback and promised to give reviews and updates in the forecast inflation path. This will further
time the next monetary strategy that will give resolve to the inflation expectations. Furthermore,
the article also states that economic managers have consistently thumbed down calls to suspend
the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law despite the
surging prices. Likewise, the economic managers presumes that the long term benefits outweigh
the short term disadvantages of higher taxes which corresponds to the inflationary effects of
TRAIN law. Additionally, the Department of Finance (DOF) previously reported that the TRAIN
law on affected the inflation by a minimal of 0.4 percentage points of the 4.6% in May.

The news article presented is categorized as macroeconomics because it deals with the
massive spike of price of commodities due to factors of inflation in food and non-alcoholic
beverages, followed by utilities and transportation. This recent inflation is due to supply factors
which impacts the overall prices of products/goods in the country. Likewise, it is classified as
macroeconomics because it generally focuses on the matters in the Philippines which affects the
national economy as a whole.

As a firm believer in always trusting the process, I personally can say that our country can
surpass this dilemma of having a high-rate of inflation which is above and beyond the target. The
complaints we harbor in having the prices of commodities raised would be pointless if we,
ourselves, don’t know how to preserve our natural resources here in the Philippines. The resources
we have here in our country isn’t enough to suffice every population that is present. That is why
this issue serves as a reminder to do our duty as economic consumers in utilizing and conserving
our natural resources efficiently. If we are able to maintain a sustainable community wherein all
of us can properly allocate all of our resources through means of providing cost-effective energy
conservation, use of renewable fuels, and more sustainable alternatives, we could be able to reduce
the rate of the of inflation and its effects, thus promoting the local economy. This intention could
be possible with the help and coordination of particular business/ government leaders, local non-
profit organizations, citizen groups, and every individual present whom are continuously analyzing
the needs and resources of the economy. Initially, I haven’t had a concern towards the different
economic problems like the massive rise of inflation in the Philippines, yet I realized that this
economic issue affects my standards of living as an economic consumer. Furthermore, the news
article did not only enlightened my knowledge towards the different conditions in the economy
but it also taught me how to make a decision and respond towards it. And while having a vision of
trusting the process, it would be an honor for me to act as a trailblazer of change for the sustainable
development of the economy in the Philippines.

Rivas, R. (July 05, 2018) June 2018 inflation soars to 5.2%. Retrieved from:
https://www.rappler.com/business/206518-inflation-rate-philippines-june-2018